What does this program do? The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency
improvements. Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing. Who can apply? • Agricultural producers with at least 50 percent of their gross income coming from agricultural operations
• Small businesses in eligible rural areas
What types of borrowers are eligible? Eligible borrowers include:
• Rural small businesses
• Agricultural producers

How can funds be used?
Funds can be used for renewable energy systems such as:
• Biomass (for example biodiesel and ethanol, anaerobic digesters, and solid fuels)
• Geothermal for electric generation or direct use
• Hydropower below 30 megawatts
• Hydrogen
• Small and large wind generation
• Small and large solar generation
• Ocean (tidal, current, thermal) generation

Funds also can be used to buy, build, and install energy-efficiency
improvements such as:
• High-efficiency heating, ventilation, and air conditioning systems (HVAC)
• Insulation
• Lighting
• Cooling or refrigeration units
• Doors and windows
• Electric, solar, or gravity pumps for sprinkler pivots
• Switching from a diesel to an electric irrigation motor
• Replacement of energy-inefficient equipment
Agricultural producers can also use guaranteed loan funds to install energy-efficient equipment and systems for agricultural production or processing.

What types of funding are available?
• Loan guarantees on loans up to 75 percent of total eligible project costs
• Grants for up to 50 percent of total eligible project costs
• Combined grant and loan guarantee funding up to 75 percent of total
eligible project costs

Why does USDA Rural Development do this?
This program helps increase American energy independence by increasing
the private sector supply of renewable energy, and by decreasing the
demand for energy through energy efficiency improvements. Over time,
these investments can also help lower the cost of energy costs for small
businesses and agricultural producers.

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